Taking small lump sum at 62

andy_mc

Hi all, first post...

I've searched all over to try to find this information, but all that I've managed to do is confuse myself so far.

I'm 62 and will retire when I'm 66.
I have a pension pot that I haven't decided what to do with yet (I haven't bought an annuity or anything), but in the meantime I'd like to make a small withdrawal as my car is on its last legs.

The question is: Are there any options that would allow me to take a cash sum now (at 62) but leave everything else where it is?

Someone said buy the annuity now, but that seems to mean that I'd start taking a regular income from it... which I don't want yet.

Many thanks in advance.
Andy

xylophone

I have a pension pot that I haven't decided what to do with yet (I haven't bought an annuity or anything), but in the meantime I'd like to make a small withdrawal as my car is on its last legs.

This is just a personal pension?

Does your current provider offer drawdown? If not, you might have to switch providers.

Are you looking to take the 25% Pension Commencement Lump Sum?

https://www.pensionwise.gov.uk/en

You could book an appointment with the above.

andy_mc

I'll probably end up talking to Pensionwise, just thought I'd try to get as much info as possible before speaking to them so that I'd know what to ask.

My current provider is ReAssure, I'm not sure if they offer drawdown, I'm afraid I know very little about the whole subject.

I'm looking to take less than 25%, it'd be more like 5%.

As for type of pensiojn, I don't know what it's classed as, it hails from my opting out of SERPS (?) many years ago (as many people did) and I get an annual statement about my pension pot from ReAssure.

xylophone

it hails from my opting out of SERPS (?) many years ago (as many people did)

Yes - your pension probably wasn't originally with Reassure?

Had you seen this?

https://www.reassure.co.uk/pensions/leave-invested-flexibility/

It’s not possible to withdraw money direct from an existing ReAssure pension, unless you take it all as a lump sum. To help ReAssure customers access their money using UFPLS and Flexi-Access Drawdown rules, we’ve introduced the Retirement Account.

You might consider UFPLS?

andy_mc

Thanks,

I took a look at the two options you mentioned, but neither seems to do what I need unfortunately.
I think I may need to speak to ReAssure again - I rang them a few weeks ago and spoke to a very sweet but slightly clueless young lady.

xylophone

Can you say why you think UFPLS would not suit your purposes?

You do not have to leave your pension with Reassure - you could move it elsewhere and get full flexibility.

andy_mc

My apologies, I read the info in the link again and it does look like this might do the job

I'll ring them again and see what they can do.
Thanks for your help.

xylophone

Just another couple of thoughts - are you currently contributing to a DC pension?

If so, do you need to consider the Money Purchase Annual Allowance?

See here

https://www.aegon.co.uk/support/faq/pension-technical/MPAA.html

Taking just the full PCLS (not going the UFPLS route) does not trigger it.

No doubt this will be discussed at your Pension Wise interview.

And have you checked your new state pension statement for planning purposes?

https://www.gov.uk/check-state-pension

andy_mc

No, I'm not contributing currently.

I checked my state pension a while back, I'll see if I can find my login details for the gov.uk site.

Thanks again.